Author: Sagar Gadam

Over 80% of aerospace & defense companies will integrate blockchain into their processes by 2021.

Blockchain and its associated technologies, burst into the public consciousness in 2015 after a relatively slow build-up spanning several years. In the years following, companies from countless industries have started to explore how the technology can be used to their advantage. However, blockchain is highly complex and not all companies and industries will find the technology easy to implement for their intended purpose or even possible to implement at all.

The aerospace and defense industry is one of the key industries in this global roll-out and could potentially gain an enormous amount from it, in its supply chain, its products and its security systems. Blockchain technology is very new and most of its applications in aerospace and defense are still, at best, at the pilot and demonstration stage. While the potential of the technology is admittedly high, the hype that developed around it in 2017 and 2018 and its technical complexity have created significant uncertainties around the future of the technology.

However, aerospace and defense companies can enhance their ability to benefit from the rise of blockchain technologies while minimizing their costs by taking into account the following recommendations:

· AI and blockchain need to be watched simultaneously

· Treat blockchain as one tool in a well-stocked toolbox

· Those not interested in blockchain might need to focus on it regardless

· Established technology vendors should increase their support for blockchain while remaining blockchain-agnostic

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Due to rapid technological developments in the exploration and production of oil sands, Canada has emerged as the world’s fourth largest producer of crude oil, behind the US, Russia and Saudi Arabia in 2018. However, chronic midstream infrastructure bottlenecks and low price environment can limit the progress of the oil and gas industry, says GlobalData.

The latest thematic report, ‘Oil Sands – Thematic Research’ reveals that backed by favourable government policy initiatives, oil sands production accounted for 67% of total crude oil production of Canada in 2018.

Ravindra Puranik, Oil & Gas Analyst at GlobalData, comments:“With further improvements in technology and extraction processes, the oil sands industry could prove to be a major growth driver for the Canadian economy, similar to the recent shale boom in the US.”

GlobalData’s thematic research identifies companies such as Suncor Energy Canadian Natural Resources Ltd. (CNRL), Cenovus Energy, Imperial Oil (ExxonMobil) and Enbridge as the leading players in the oil sands industry in Canada.

New Thematic Research Report on Oil Sands

Oil sands are rich sources of bitumen, an extra-heavy hydrocarbon that can be extracted using unconventional techniques, such as, surface mining and in-situ extraction. As these processes are energy intensive, consume large volumes of water and result in emission of greenhouse gas in high volumes, they are attracting severe criticism from environmentalists around the world.

This has prompted organizations from the oil and gas, and financial services industries, such as Equinor, Marathon Oil, Axa and HSBC to withdraw or curtail their involvement in projects associated with oil sands. In addition, pipeline capacity constraints and setbacks in construction of new pipelines could impact further progress of the oil and gas industry in Canada.

Puranik adds:“The growth in oil production in Canada is encountering the problem of chronic midstream infrastructure bottlenecks, amid delays in construction of new pipelines. The two major pipelines that were expected to ease the bottlenecks–Keystone XL and Trans Mountain–have been delayed indefinitely due to legal and regulatory setbacks.”

As the global demand for crude oil is expected to grow, particularly in Asia, the Canadian Oil Sands industry will continue to attract investments from all over the world.

Puranik concludes:“Nevertheless, considering the overall complexity of the oil sands extraction process, global prices for crude oil will have to remain at comparatively higher levels to ensure profitability from oil sands projects.”

Medical Devices: Very Diverse Market and New Business Models are Emerging

In this report our analysts have been assessing the current state of the medical devices industry. This industry is expanding quickly and some key areas are producing very good growth, but this is not without its complications however, as prices are getting squeezed and regulation is due to change significantly over the coming years.

Technological development is key in this industry to create new innovative products that can improve patients’ lives, but protecting intellectual property is proving to be increasingly difficult. Despite this some players have been enormously successful at using new technology to solve old ailments and there are significant opportunities in this market. This report features four key sections including: regulation, wearables, neurology and aging demographics.

Wearable Devices are the new hot topic within the medical device market. Much has been said and written about how smart devices, some intended for other purposes, can be adapted and developed to produce powerful new tools to measure all manner of health issues. The beauty of many of these solutions is that they can be consumer focused and sold retail, direct to the consumer in some cases, allowing manufacturers to completely bypass the traditional medical prescription structure.

Click & Collect in the UK to Grow to £10bn by 2023 but Customer Satisfaction Lags Behind Home Delivery

The UK Click & CollectMarket is set to rise 45.8% over the next five years to reach £9.8bn by 2023, but growth will slow as the fulfilment method matures and services offered by retailers are optimised, according to GlobalData.

The latest report ‘Click & Collect in the UK 2018 – 2023’ reveals that the clothing & footwear sector is by far the largest within the click & collect channel, accounting for 59.9% of spend in 2018. Although the majority of key multichannel retailers have finely tuned their proposition over recent years by extending order cut off times, increasing speed and minimising costs, service enhancements have plateaued as these elements have been optimised.

Emily Salter, Retail Analyst for GlobalData, commented:“Although 79.9% of click & collect users were satisfied with click & collect services in 2018*, this is significantly lower than for home delivery, which stands at 89.5%*.

“Retailers continue to introduce measures to meet rising consumer expectations for home delivery, such as offering same day services – led by online pureplays such as Amazon and ASOS. Next is one of the few multichannel retailers currently offering a click & collect proposition to rival the speed and cost of home delivery, through recently introducing free one hour collection in selected stores.”

Additional purchases increase the importance of click & collect to retailers, as 39.2% of customers bought an additional item while collecting their last order*. This varies quite substantially by sector though, with food & grocery items being the sector that more customers purchase an extra item from, due to the low prices and essential nature of many products, and presence in a range of stores.

Salter concludes: “A number of factors will inhibit growth of the click & collect channel, including store closures. The growing number of retailers closing stores and implementing CVAs will reduce the availability of collection points, increasing usage of alternative delivery options. Additionally, delivery saver schemes encourage customers to predominantly use home delivery as express deliveries are included in the vast majority of schemes, driving up usage of express home delivery.”

Significance of Big Data & Analytics (BDA) is not foreign to the pharmaceutical industry, especially in the drug discovery process. Every major pharmaceutical company is investing in some form of drug discovery analytics platform in their various clinical research processes. Even contract research organizations (CRO) are using analytical software in clinical trial processes to identify the best possible outcomes. Apart from the drug discovery, pharmaceutical companies are using analytics solutions in other operational processes such as marketing analytics, pharmacovigilance, drug manufacturing, and targeted marketing of geographies.

Although the adoption of big data in pharmaceutical operations has been focused mostly on R&D, vendors are exploring its potential use in other operational processes. In supply chain, it helps pharmaceutical companies diagnose issues in their logistics, supplier performance, procurement, delays in delivery, demand management, etc. Vendors are launching BDA solutions that focus on increasing supply chain productivity of pharmaceutical companies.

Furthermore, new branches of pharmacology are gaining importance in the market such as pharmacogenomics (the response of drugs to the genetic makeup of an individual) and pharmacokinetics (absorption, distribution, and exit mechanisms of a drug within the body). Consequently, big data vendors and pharmaceutical companies are working together to develop analytics solutions that can be used in the clinical research processes relating to different branches of pharmacology.

With competition increasing in the pharmaceutical sector and the market flooded with a multitude of treatments and therapies, determining drug efficacy and designing market strategies remains a priority, while maintaining drug safety. The use of big data in these operational domains will enable pharmaceutical companies to introduce innovations in both products and processes. With digital transformation being the main priority of most pharmaceutical enterprises, the adoption of BDA and AI platforms are expected to increase in the coming years.

Healthcare sector has undergone a dramatic technological transformation over the past decade, primarily due to the advent of cloud computing. While healthcare cloud adoption is accelerating, the focus is gradually shifting from utilizing cloud solutions for broader purposes than just cost-effective storage. Healthcare providers are moving towards value-driven and consumer-centric patient care as they increasingly look to embrace cloud solutions. As the due diligence regarding the healthcare plans and treatment options is becoming prevalent, healthcare seekers are pushing healthcare providers to offer transparent, customizable, and cost-effective solutions. One of the ways healthcare providers are looking to achieve this is by opting for cloud-based solutions.

Cloud computing is one of the novel approaches that can handle some of the challenges of smart healthcare in terms of security, sharing, integration, and management. There are significant opportunities for cloud computing in the healthcare market. Most healthcare enterprises are expected to provide efficient, faster, and safe healthcare service that is otherwise impossible without modernizing their IT infrastructure. Cloud computing diminishes the need to invest in expensive IT infrastructure.

The cloud has facilitated a shift in the healthcare sector, where patients are empowered to manage their own care. Moreover, providers must harness patient-centric solutions and open communication to promote transparency and improve overall patient experience and outcomes. In addition, healthcare providers must instill healthcare seeker confidence by protecting critical patient data through required security measures. This can eventually mitigate the resistance to adoption of cloud computing in the healthcare industry regardless of the vendor and the cloud platform used.

Technology’s Infiltration of the Wealth Management Industry will Present Cybercrime Risks in 2019

Wealth managers should use technology to grow assets under management (AUM) and reach new demographics, however, they must remain astute to consumer protection against cyberattacks, which is becoming more common in this digital age, according to GlobalData.

The latest report, ‘2019: Trends to Watch in Global Wealth Management’ identified four main trends to come in the year:

In the wake of CRS, non-participating countries such as the US will continue to grow as offshore centers.

Volatility will require a rethink of diversification.

As use of technology increases, wealth managers will have to take more serious action towards cybersecurity.

New client demographics will become more prevalent.

As technological change is accelerating in the wealth management industry, the threat of cyber-attacks and data breaches are an increasing concern.

Sergel Woldemichael, Wealth Management Analyst at GlobalData, says,“Only 43% of wealth managers are concerned about the effect of data breaches on their brand*, which is a relatively non-chalant approach by wealth managers towards cybersecurity that needs to change.”

Technology is growing at a rapid pace, and the risk of cyber-attacks will only grow with it. Furthermore, investors themselves are seeing data breaches regarding other aspects of their life such as social media heightening sensitivity. Wealth managers should have a contingency plan in place to reduce dampening profits and damage to brand image.

Woldemichael adds,“The typically paper-based and male-dominated wealth industry is beginning to experience client demand for technology and demographic changes. Technology has helped bridge the gap between the HNW and the masses, regarding wealth management services.”

62.1% of wealth managers believe digital channels will be more important to the next generation than the current*, so it is in wealth manager’s best interest to adapt as soon as possible to thrive and grow AUM.

Woldemichael concludes:“The historically male dominated industry is beginning to see more women enter the trade. Not to mention the wealth of women is growing. Wealth managers should not remain stuck in their ways as it will only damage profits – remaining adaptive and forward-thinking will be key for growth.”

With consumers globally embracing financial technologies, digital payments firms are fast disrupting the hegemony of traditional players in the payment value chain. Against this backdrop, the payment segment is emerging as a lucrative investment avenue for merger and acquisition (M&A) activities and venture financers, says GlobalData.

The latest report, ‘Smart Money Investing in the Financial Services Industry – Q4 2018’, reveals that the number of M&A deals rose by 10.2% to 640 during the fourth quarter (Q4) of 2018, much higher than the previous three quarters. Even though the payment segment accounted for only 11% of total M&A deal count, it registered the fastest quarter-on-quarter growth of 30.8%.

Sowmya Kulkarni, Payments Analyst at GlobalData, explains:“This trend is more prevalent in emerging markets like China, where consumers have bypassed card payments by switching directly from cash to alternative payment methods.”

Consequently, traditional payment companies are now exploring new avenues to stay ahead in the market. The announcement that Visa is acquiring Earthport, a UK-based cross-border digital B2B payment provider, can be seen as one such move.

On the other hand, deal value registered quarter-on-quarter growth of 10.7% to $58.7bn. The rise in deal value was due to a rise in high-value deals. The top 10 M&A deals in Q4 2018 accounted for $33.6bn, up from $28.9bn in Q3 2018.

Similar growth was seen in the venture financing space, with deal count in the payments segment more than doubling to 119 deals in Q4 2018.

Kulkarni concludes:“The rapidly rising consumer preference for convenience, coupled with the increased level of security offered by new payment technologies, will further drive investments in the payments space over the coming years.”

A constrained payer environment and patent expiration of a number of best-selling biologics such as Humira (adalimumab), Rituxan/MabThera (rituximab) and Herceptin (trastuzumab) represent key drivers of global biosimilar market growth.

Government support for biosimilars is increasing in key mature and emerging markets, given the cost-saving opportunities that these products represent for national healthcare budgets. Consequently, biosimilars are expected to be the leading growth drivers of the pharmaceutical industry in 2019.

Global Biosimilars Market

There are 492 biosimilars in active development across a range of therapy areas, a large proportion of which are in late-stage development. Biosimilars in development for oncology and immunology indications are particularly prominent among the pipeline.

The retail food market will grow faster in a hard Brexit scenario than in a withdrawal agreement or no Brexit outcome, with growth 0.7% higher by Q4 2020.Low consumer confidence and inflated food prices would see the UK non-food retail sector £2.3bn worse off in a hard Brexit scenario compared to a Brexit based on the Withdrawal Agreement.

Karla Rendle, Senior Retail Analyst at GlobalData, a leading data and analytics company, offers her view:

“In the light of recent developments, retailers are coming to terms with the fact that there is a real need to plan for a hard Brexit scenario, with an end to free trade and no customs union between the UK and the EU. Increased tariffs, delays at ports and borders and a sharp fall in the pound, pushing up the cost of imports, would all have a negative impact. GlobalData forecasts, published in its Brexit Impact on Retail report indicate that a hard Brexit scenario would be more damaging than either an exit based on the Withdrawal Agreement or a delayed Brexit /second referendum scenario.”

Learn how macroeconomic fluctuations will effect the retail market in different Brexit scenarios, better preparing your business to cope with pressures in 2019 and 2020.

Explore GlobalData’s quarterly forecasts to the end of 2020 in the food and non-food retail markets, so you can see how the two will interact and to what extend inflation will offset falling volumes in total retail.

Delve into the hot issues around Brexit, including immigration, ports, borders and the Irish backstop, enabling you to view the bigger picture of how trade will be impacted by changes post-Brexit.

View historic and current consumer sentiment around key Brexit topics such as personal finances and retail spend, giving you a greater view of how consumers will behave as the UK approaches March 2019.